As America's share of the global long-haul travel market declines, leaders of many of the largest and most recognizable travel industry corporations in the country have united to send Congress and the Trump administration a message, issuing a joint statement that calls for the reauthorization this year of Brand USA-the organization that's responsible for promoting the U.S. as a tourism destination to the rest of the world.
Their statement, released after U.S. Travel's biannual CEO Roundtable event on September 18, argues that Brand USA is a proven program that's crucial to maintaining a level playing field in the ultra-competitive international travel market, being our country's only answer to the robust marketing efforts of our tourism rivals.
Brand USA doesn't cost U.S. taxpayers anything. It's funded solely by a ten-dollar ESTA (Electronic System for Travel Authorization) fee assessed to international visitors coming from countries enrolled in the Visa Waiver Program, in conjunction with private-sector contributions.
Unfortunately, while Congress agreed to extend the implementation of the ten-dollar ESTA fee from 2021 to 2027 during its February 2018 budget caps deal, it diverted those revenues to the general fund, not Brand USA.
The statement's co-signers posit that a modest increase in the ESTA fee amount would fully fund Brand USA from 2021 to 2027, allowing the program to continue operating at no cost to taxpayers. Those who signed the request that Congress reauthorize Brand USA were:
- Heather McCrory, Accor
- Anré Williams, American Express
- Christine Duffy, Carnival Cruise Line
- Patrick Pacious, Choice Hotels International
- Jeremy Jacobs, Delaware North
- Chrissy Taylor, Enterprise Holdings
- Chris Nassetta, Hilton
- Elie Maalouf, InterContinental Hotels & Resorts (IHG)
- Jonathan Tisch, Loews Hotels & Co.
- Arne Sorenson, Marriott International
- Jim Murren, MGM Resorts International
- Marc Swanson, SeaWorld Parks & Entertainment
- Roger Dow, U.S. Travel Association
- John Sprouls, Universal Parks & Resorts
- Geoff Ballotti, Wyndham Hotels & Resorts
Travel is the U.S.' second-highest export, which generates $2.5 trillion for the nation's economy and supports one in ten American jobs, and significantly helps drive down the national debt. Last year, the industry posted a trade surplus of $69 billion, without which the overall trade deficit would have been 11 percent higher.
While studies prove that more people around the globe today are traveling internationally, the percentage of those travelers who choose to come to the U.S. is falling. America's share in the 21 percent overall gain in global long-haul travel from 2015 through 2018 vastly underperformed. Its volume of overseas visitors increased by just 3.1 percent during that time.
That decline in market share U.S. economic losses of $59 billion in spending by 14 million international visitors and cost the country 120,000 jobs.
What's more, the U.S. travel market share is forecast to continue its slide and drop to under 11 percent by 2022, which would mean the economic loss of a further $180 billion in spending by 41 million missed international visitors, and eliminate 266,000 jobs over the next three years.
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